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MSME FAQs

No. All the information provided in your MSME registration, including the type of enterprise, is applicable from the date you specify as the effective date. Any changes you make to your status is applied from the effective date you have chosen.

When you choose MSME Credit Period in the Based on Credit Days provided in option under Show Due on, you are instructing TallyPrime to calculate due date for MSMEs based on the number of credit days set in Credit Days Allowed for Micro and Small Parties in F11 Features. This typically represents the maximum permissible days for credit for transactions with MSMEs. By selecting this option, you can ensure that the due date for MSMEs is determined by agreed-upon credit terms.

The default setting in F11 for Credit Days allowed for Micro and Small parties is presently set at 45 days. In the event of future changes, you can adjust this value to the updated regulations.

By choosing Bill-wise or MSME Credit Period (whichever is earlier) for Based on Credit Days provided in under Show Due on, the report’s due date calculation will prioritise the lesser of the credit period values set in F11 (Credit Days Allowed for Micro & Small Parties) and those specified at the Bill-wise level. This ensures that the due date is calculated as per the supplier’s credit terms, whether set globally or at the individual transaction level.

Yes, you can export MSME Form 1 in TallyPrime in multiple formats to suit your needs. Additionally, you have the option to print it in a Return Form format (Alt+P Return Form). This flexibility allows you to customise the output of MSME Form 1 according to your requirements.

Yes, you can print your UDYAM No. along with your Enterprise type in the reports like Balance Sheet, Profit & Loss A/C, & Stock Summary reports. Enable the option Show Udyam Reg No. & Enteprise Type for Reports under Print Configuration.

Yes, you can open the Outstanding MSME Bills report by navigating through Go To.

Yes, you can specify the enterprise type without entering the UDYAM No. However, it is advisable to provide the UDYAM No. to verify the authenticity of the enterprise.

Yes. We have a report – Update Party MSME Details where one can update single ledger or multiple ledgers at a time.

This happens when these Party’s address history had been configured as India at some point in time. Therefore, they also participate in Non-Foreign filter.

Yes, you can open the party ledger in alteration mode by pressing Ctrl+Enter, and make any changes to the Party master.

 

You can get the list of disallowed bills for a financial year, for example 2023-24, by going to MSME Form 1.

  1. Press Alt+G and type or select MSME Form 1 Statement.
  2. Change the report period by pressing F2 and enter the from and to dates as 1st April 2023 and 31st Mar 24, respectively.
  3. Press F12 and set Based on credit days provided in, to Bill-wise or MSME Credit Period (which ever is earlier)
  4. Set Show Credit Days to Yes, this will allow you to see the original credit period of each bill.
  5. Press Ctrl+A to accept.
  6. Press Ctrl+B: Basis of Value.
  7. Under Type of Bills, select Pending Bills option to display all pending bills for the MSMEs as of 31st March.
  8. Press Ctrl+A to accept.

You can see all the bills that were raised during the financial year but were not paid by 31st Mar. You can also see the number of overdue days for each bill. You can export this list.

Also, there may be some bills that are not due by the 31st of march. Therefore, they may not appear as pending bills. You can use a different method to view all such bills.

  1. In MSME Form 1 Statement, press F2 to set the period as 15th February 2024 to 15th May 2024.
  2. Press Ctrl+F: Apply Filter.
  3. Press F7: Advanced Filter.
  4. From the List of Options in the first field, select Bill.
  5. From the List of Fields, select Date.
  6. From the List of Conditions, select lesser than equal to.
  7. Specify the date as 31st Mar 24.
  8. Press Enter.
  9. Select And to continue adding filters.
  10. From the List of Options in the first field, select Bill.
  11. From the List of Fields, select Due Date.
  12. From the List of Conditions, select greater than.
  13. Specify the date as 31st Mar 24.
  14. Press Ctrl+A.

You will see the list of bills with due dates beyond 31st March 2024, which will be disallowed from deductions.

To access full list of bills linked with Micro and Small parties, simply choose the All bills option within the Bills Payable – Micro & Small view.

MSME stands for Micro, Small, and Medium Enterprises. These are business entities categorized based on their investment in plant and machinery or equipment, and turnover.

A new clause (h) has been added to Section 43B, as per this amendment any sum payable to a micro or small enterprise beyond the time limit specified in Section 15 of the MSMED Act 2006 shall be allowed as a deduction on a payment basis. It is applicable from 1-Apr-2024.

The UDYAM Registration is a government registration process in India aimed at identifying and classifying micro, small, and medium enterprises (MSMEs) for the purpose of availing various benefits and schemes offered by the government. The UDYAM Registration replaced the earlier system of MSME registration known as Udyog Aadhaar Memorandum (UAM) in July 2020.
To apply for UDYAM Registration and obtain the UDYAM Number, MSMEs can Visit the UDYAM Registration Portal.

The new amendment in the Income Tax Act will only apply to the payables to MSME businesses.

The MSME Act applies to companies registered under the Ministry of Corporate Affairs (MCA). Regardless of whether they are registered under the Ministry of Micro, Small, and Medium Enterprises, if a company is registered under the MCA, the provisions of the MSME Act will be applicable to such businesses.

Yes, you can mention the UDYAM No. and the Enterprise Type in the party master by enabling Provide MSME Registration Details from F12 Configuration of Party Master (Alter or Create).

You can generate an updated outstanding report by adjusting the Report to date to the current date. However, please note that by default, the report will not incorporate the System Date as the Report to date.

If you need to specify/update the UDYAM No. or Enterprise Type, you can specify the Effective Date for the changes.

The system will verify the format of the UDYAM Number but will not validate its accuracy.

Yes, you can do so from the Update Party MSME Details. You can navigate to report through the below steps and update the MSME Registration details of the multiple-parties:

Display More Reports → Statutory Reports → MSME Reports → Update Party MSME Details
Gateway of Tally → CoA → Ledgers → Exception Reports → Update Party MSME Details

Or from Go to.

Additionally, if you have the MSME Registration details of the companies in an excel, you use the Excel Import feature to import the MSME Registration details as well.

The Outstanding MSME Bills Report furnishes detailed information on all bills pertaining to Micro and Small Enterprises. You have to specify the enterprise type and UDYAM details of the party ledger for TallyPrime to consider the business as MSME.

To specify credit days agreed upon for MSME parties, you can input this information within the Default credit period section found under Maintain balances bill-by-bill within the party ledger.

You have the option to utilize the Apply Filter feature and choose “Type of Enterprise” to narrow down the specific MSME ledgers within the outstanding payable and receivables report.

The Bills Due in Upcoming Days option enables you to filter bills that are due within a specified time frame that you choose to view.

Agreement: If there are values provided at “Default Credit Period” at the ledger level or at “Bill-wise”, then TallyPrime will treat it as an agreement.

Non-Agreement: If there are no values provided at “Default Credit Period” at the ledger level or at “Bill-wise”, them TallyPrime will treat it as non-agreement.

Based on the above, the F11 feature Credit Days allowed for Micro and Small parties will be automatically applicable to all Parties.

MSME Form 1 is a half-yearly return issued by the MCA which states that specified companies are required to file this return form to disclose their outstanding payments to MSME suppliers.

Certainly, you can limit access to MSME reports by defining user roles. Similarly, restricting access to Accounting Master will prevent users from updating MSME details for companies or parties.

The credits days of 45 days set at F11 company features is applicable to Outstanding MSME Payables and MSME Form 1 reports.

A single MSME registration can cover any number of branches, plants, or industrial units under a single entity.

Failing to pay MSMEs within the timelines prescribed by the MSME Act will result in non-compliance:

  1. Interest charged on delayed payments
    The penal interest chargeable for delayed payment to an MSME enterprise is three times of the bank rate notified by the Reserve Bank of India.
  2. Penalty for Late Filing of MSME Form 1
    The section 405(4) which includes non-furnishing/incomplete/incorrect information, states the penalty, a fine up to Rs.25000 (Co.,), Rs.25000/- (Min) & Rs.3 lacs (max) and imprisonment of 6 months for directors or both. Therefore it is mandatory for directors to file the MSME form 1.

MSME Form 1 should be filled by specified companies (registered under MCA).

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